Yesterday’s signals were not triggered, as none of the key levels were reached.
Today’s USD/JPY Signals
Risk 0.75%.
Trades may only be taken between 8am New York time and 5pm Tokyo time, during the next 24-hour period.
Short Trade
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 109.52.
Put the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Long Trade
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 108.05.
Put the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.
USD/JPY Analysis
I wrote yesterday that I expected the price would reach 109.52 over the next 24 hours, but I expected also this pair would do relatively little over the day. The price never did reach 109.52, turning bearish about 10 pips short of the level. This pair is very in-between, both the Yen and the Dollar are relatively strong generally. At the time of writing, the Dollar is turning bearish and the Yen is showing some short-term momentum against it, so the price may fall today. I have no confidence in forecasting today’s direction generally, especially in this currency pair.
There is nothing due today concerning the JPY. Regarding the USD, the Chair of the Federal Reserve will be speaking at a conference at 8:15am London time.